Arts N Crafts Industries manufacturers high-end light fixtures which it sells internationally. The company is responsible for paying for shipping its product to a distributor located in Atlanta, Georgia. Due to the high cost of shipping, the company is considering shipping its products unassembled, but will include detailed assembly instructions in each package. By shipping unassembled products, Arts N Crafts will be able to shrink the size of its cartons and thereby increase the number of products per pallet from 25 (5 rows of 5) to 36 (6 rows of 6) . Note that this change will not appreciably increase each products 4-pound shipping weight. Furthermore, since individual fixtures will be packed more tightly, they will be less susceptible to damage and easier to handle. Thus, the company expects the freight class to decrease from 100 to 85. Currently the company ships 900 units per week.

Using the table below, assess the impact of the proposed change in packaging on weekly shipping cost.

a. Before shrinking the size of the cartons, shipping costs are $__ per week (Enter your response rounded to two decimal places.)

b. After shrinking the size of the cartons, shipping costs are $__ per week. (Enter your response rounded to two decimal places.)

c. The new packaging will (1) shipping costs by $__ per week. (Enter your response rounded to two decimal places.)

d. How will your analysis change if demand for the product increases to 500 units per week? Before shrinking the size of the cartons, shipping costs are $__ per week. (Enter your response rounded to two decimal places.)

e. After shrinking the size of the cartons, shipping costs are $__ per week. (Enter your response rounded to two decimal places.)

f. The new packaging will (2) shipping costs by $__ per week. (Enter your response rounded to two decimal places.)

Class 50 55 60 65 70 77.5 85 92.5 100